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Gazprom subsidiary clinches deal on CO2 quotas

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MOSCOW, November 1 (RIA Novosti) - Gazprom Marketing & Trading, a subsidiary of Russian energy giant Gazprom [RTS: GAZP] said Wednesday it has closed its first deal on the European market for quotas on carbon dioxide emissions, with Deeside Power Limited.

The trade in greenhouse gas emission quotas is being implemented in line with the Kyoto Protocol, which came into effect February 16, 2005 following ratification by Russia in 2004. The document, which covers more than 160 countries and over 55% of global greenhouse gas emissions, aims to reduce emissions by all industrial countries by 5.2% from the 1990 levels by 2008-2012.

The U.K.-based subsidiary said in a news release that it sold the emission quotas to the trade department of International Power, a leading energy supplier on the world and European markets, in exchange for energy supplies and in line with its strategy to expand its presence on the European energy market.

One of the ways to get permission for the sale of quotas is to increase energy generation from environmentally friendly fuels, or to buy energy. Russia, where industrial production has been all but paralyzed since the 1990s, had surplus quotas for the emission of greenhouse gas.

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